MSE News: Interest rates could stay low for years

markdeer2004

So, did the report writer 5 years ago predicted the economy as it is now. I rest my case.

gozomark

cloud_dog wrote: »

all this money being printed is basically going to reflate the banks at some point they will start using this money to actually make money (that is what they do), at this point (assuming banks are well capitalised) the only way for the government really to affect / reduce money supply/price inflation within the consumer environment will be via interest rates (or taxes). The big question then comes down to can they afford to do this, will the economies be sufficiently robust to accomodate putting the brages on growth.

I think they will be up against a rock and a hard place and als othere is the benefit to them of inflating their way out of the debt.

Time will tell.

I agree....

nilrem_2

markdeer2004 wrote: »

So, did the report writer 5 years ago predicted the economy as it is now. I rest my case.

Quite, the fact is that no one knows what the BOE rate will be in one years time let alone 5 years!:)

IMHO most of these reports are best taken with a pinch of salt!

neil324

Inflation figures this week should show a drop from 1.6% to 1.2%:rotfl::rotfl::rotfl::rotfl::rotfl:

gozomark

neil324 wrote: »

Inflation figures this week should show a drop from 1.6% to 1.2%:rotfl::rotfl::rotfl::rotfl::rotfl:

so are you forecasting a different figure

Jonboy1889

The Times love contradicting themselves. Seems like inflation is still a risk:

http://business.timesonline.co.uk/tol/business/economics/article6867675.ece

gozomark

they are not contradicting themselves, merely reporting views of different commentators

neil324

gozomark wrote: »

so are you forecasting a different figure

Crystal ball says 1.6

Jonboy1889

gozomark wrote: »

they are not contradicting themselves, merely reporting views of different commentators

Probably true in this case, but they do like to change their mind depending on what news comes out. House prices are crashing! House prices are soaring! House prices are crashing again! House prices are staying flat! House prices are crashing!

Roger Bootle, there is a man with consistency. (although he is part of Capital Economics, who have consistently thought house prices were overinflated)

thor

Jonboy1889 wrote: »

Probably true in this case, but they do like to change their mind depending on what news comes out. House prices are crashing! House prices are soaring! House prices are crashing again! House prices are staying flat! House prices are crashing!

Which proves my theory that economics is trying to push itself as a science when in fact it is just a guessing game. I would back my (uneducated) predictions as much as that of a revered economist. In other words - not that much!